The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-29
THEUNION PACIFIC RAILWAY
President Charles Francis Adams Be-
fore the Investigating Committee.
Cow the MANY Branch Lines of the Union Pa
cific Were Acquired-Why They We're Built
and Their Value as Railway Property.

the working and financial management OF ali
the railroads that have received aid from the
government in bonds" was resumed to-day oy
the commission appointed by President Cleve-
land Elk Governor Pattison presided, ana
Commissioner e. Ellery Anderson acted as in
qusitor. 4
Charles Francis Adams occupied the witness
chair Commissioners David Littler was not
president having to return to his duties as
member of the Illinois Legislature. Mr. Adams
said he had been president of the Union Pacihc
road three years. and knew great deal OF the
road and its management and working during
his presidency but knew almost nothing about
it prior to that time. 1t was not his business to
look into the history of the roads. but to post
himself on the consolidated road lie had
heard vague stories that Directors Gould, SID
new Dillon and F. T.. Ames had so conducted al
fairs that they were in debt to the company
Mr. Adams had investigated these charges. bu
he was not permitted to state his conclusions
Mr. Adams looked into the Nevada. the Oman:
Valley, and all of the branches OF the Union
Pacific It was general examination.
Each of them has separate or
ganization The Union Pacific consolidated
the Denver Pacific and the old Union Pacific.
Mr.. Adams thought the charter of the Union
Pacific consolidated very narrow. He did not
suppose the road proper had the power to ouilo
q mile Of branch track under that charter. he
is supposed to be president of all the branches.
The accounts of the branches are kept in Oma-
ha and in Boston. For transcript OF the books
the commission would have to see Comptroller
Olln w. Mink vino knew all about 1t. He
never had looked into book He relied i'm
plicitly on Mr. Mink. Mr.. Adams examined the
affairs Of the Denver & South Park. 1t was.
built by Governor Evans. OF Colorado. In 1852
or 1885, who sold it. $50 miles, to the Union Pa
cifc. Governor Evans had had no connection
with the Union Pacific He did not know
whether the construction books had been trans
ferred to the Union Pacific. 1t was
before his time. MIR. Mink could tell
Mr. Adams had heard who MADE
the bargain transferring Governor Evanss road
to the Union Pacific. but did not know who 1t
was. There was strong competition for pos
session of the road, and Mr.. Gould, OF the Union
Pacific, Mr.. Adams thought, succeeded In closing
the purchase for the road. Prices were much
inflated in Colorado at this time, and the stock
in the road was turned over at an extravaganza
price, as it turned out soon after. Colorado prac-
tically collapsing. The Evans road was built to
satisfy the famous mining boom, and carried
men and tools to the spots where holes had been
dug in the ground and called mines. when
the boom collapsed" said MIR. Adams, 'as every
one knows it did, the road collapsed. 1t has lost
tice to the men who purchased the rcnd, that,
before the bargain had been completed, they
were offered by General Palmer, $3.50, 600 for the
bargain l state this on the word of Mr.. Ames.
The net loss in operating the road last year was
100000 It gets business from travel to
and from the mines. The ups and downs in
Colorado such that do not think the future
of this branch is hopeless. If they should strike
mineral was discovered. it would again prosper
There is no chance of agricultural advancement
in that region. Colorado business, in railroad
parlance, means such as a purely mineral coun-
try produces. This branch has been burden
to ne for three years. knew the contract price
which MIR. Gould agreed to pay Governor Evans,
but it has escaped my mind now. like many
other things connected with the matters of these
side roads. Whatever it was, it was charged to
the investment account. of which We have a
large one-some 500, 0O0 600 When we bought
the road there was bonded debt held by out
siders of ST. 800 900, and this. together with the
cost of an extension to Leadville and thence to
Gunnison, was provided for by the issuance OF
| "a. Csc. 900 in consolidated bonds"
In this statement Mr. Adams was aided by
| Judge John w. Dillon. who was spectator.
These bonds, MIR. Adams said, are now In the
Union Pacific treasury.
The construction department. of the Union
| Pacific had charge of the construction OF these
| branches. They let the work to the lowest bid
der. Mr.. Adams said that Mr.. Brinckensdorfer,
| who had much to do with the original construc-
| ton of the old road, and who now lives at Oma-
| ha, was man of experience, and had these
| contracts. He knew all about them and could
explain every thing. The Nevada Central branch
| was taken up next This road is ninety miles
long. and it was built on the expectation Of the
! development Of Nevada It was acquired by the
Union Pacific in 1881 or 1882, and about the frs,
| thing Mr. Adams did as president was to throw
| this branch overheard, as he could see no future
| nlshed the capital to build that road. and wher
| it was bought by the Union Pacific its cos
| price was charged to the expense account %
| was at loss to know why We had the road, and
| made inquiry into it," said Mr.. Adams IS. II
| H. Clark general manager of the Missouri Pa
/ cifc, bought the road for Union Pacific. Wher
closed it up it was in debt to the Union Pacific
$500. 900. 1t never paid more than expenses
many mining railroads. Mining railroads are
species of gambling. While the mines last they
are exceedingly profitable When they give GU
you have dead road on your hands The Com
stock road is brilliant example. 1t was one O
the most profitable roads In the country To-
| some years. and its future looked brilliant bu
the mines gave out and then it fell fat"
Mr.. Adams said that he had carefully investi
| gated the matter, and he could not find that an.
| Of the money for the Nevada Central had gon
| to anyone connected with the Union Pacific
| Mr.. Gould had a grand scheme Of developing
an active railway system west of Omaha, ST
Joseph, and Kansas City, by which deliverie
were to be made to the roads running to Chicag
and ST. Louis. A part of this scheme was tn
purchase of the Kansas Central, which ran alon
the northern part Of Kansas. part of it, tn
central branch, subsidized, but there wer
many branches feeding it which were not sub
sidized. His scheme contemplated the tappn
of Texas. New Mexico, and the whole Yves,
Afterwards Mr.. Gould got interested in othe
matters, and dropped this scheme. The Contra
branch is leased to the Missouri Pacific, the in
ducement to the Missouri Pacific being the cor
troll Of that .rafic. The road IS very profitable
| as it is III an agricultural country. The parte
| interested in the sale to were in wise ir
terested in the Union Pacific road. Mr. Adam
said the stocks of the Central Pacific, UEon Ps
cifc and Kansas Pacific were consolidated an
taken up by bonds of the consolidated Unto
Pacific Railway Company in 1880. and under
provisional charter. later on, 1000, 600 wa
| issued There we're never any other issue.
The road had always paid cash for everythins
and there had never been a construction con
pany in the company. Everything had bee
done honestly. Mr.. Adams also found tn
| Council Bluffs street-railway. road about
mile long. among the properties which the roa
had become possessed of in the former reeim
II think" said he, 1.-The road bought this stree
railway because it facilitated getting up into Il
town. and believe make it salab
piece of property. 1t is good property to sell
The Denver & Marshall railway, auoth,
branch, runs from Denver. thirty miles, to Il
coal regions. Thirty five per cent was paid +,
ming between the Union Pacific and the Atch
son & Santa Fe was purchased jointly by the
two roads. 1t had $3.50, 600 worth of stock, al
is not far from fifty miles in length It VI
bought to connect with Topeka, and it bare
| 4 m ir frny rs,r~ hc